South Essex College, based in Basildon, Southend and Thurrock, is to cap teachers' salaries and freeze pay.
The city had to cut public services, shed jobs, freeze pay, abandon capital projects and raise taxes to make sure it could pay back the federal loans.
All sorts of ideas were bandied about, including a Democratic attempt to impose an income tax surcharge on millionaires and the Republican counter to freeze pay for federal employees.
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"If you want to introduce differential, it's much easier to do it at a time when pay's increasing more quickly so you can, for example, freeze pay in some regions and raise it more quickly in others, " he said.
When compared to the Social Security hard freeze, the proposed federal worker pay freeze seems more like slush.
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They include Education and Library Board headquarters clerical staff, school domestic assistants, playground assistants and catering staff, who were badly hit by a freeze on pay rises.
About half of those cuts would come from the Pentagon, including reduction in purchasing, a freeze on pay for non-combat personnel and a reduction in overseas bases.
Brian Strutton, the GMB's national secretary for public services, said his members would be "sickened by the imposition of another year's pay freeze", following below inflation pay rises in 2008 and 2009.
Then, after the fall in freight rates that followed the September 2001 terrorist attacks, the unions also accepted employers' calls for a pay freeze, on condition that more owners joined pay talks.
"On the face of it a 20p a day rise doesn't sound much, but we should remember NHS staff have had a pay freeze since 2010 and this means, in real terms, their pay is down by nearly 10% due to inflation and this creates more financial hardship, " he said.
Public sector workers are facing a five-year pay freeze under plans to cut the spending deficit.
And, like other public-sector workers, the police already face a two-year pay freeze from September.
QinetiQ confirmed that it was introducing a pay freeze, but declined to comment further.
Unions said they were outraged by the pay freeze, which aims to cut costs.
Powerful public-sector union leaders condemned the pay freeze almost before the shadow chancellor was off the podium.
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Job losses would have been that much greater if there had been no pay freeze at all.
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Chancellor George Osborne said in his first Budget speech there would be a two-year public sector pay freeze.
Barack Obama, probably feeling some heat from the last election, recently announced a pay freeze for many federal workers.
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There has been a strong public reaction to the proposed increase following a pay freeze offer for manual workers.
They can use a public sector pay freeze to achieve part of that.
Members of the Welsh assembly have agreed a pay freeze for four years after the assembly election next May.
And he suggested a public sector pay freeze of up to three years.
Labour leader Ed Miliband is supporting the pay freeze for public sector workers.
In real terms, this would be a pay freeze, but a better deal than other Zimbabwean workers can expect.
The business has also trimmed outgoings through measures including an across-the-board pay freeze.
They've had two years of pay freeze and are facing job losses and to hear this is really hard to swallow.
Union members among the company's 7, 000-strong UK workforce are to be balloted on strike action over a planned pay freeze next year.
The 1% pay rise limit was put in place for two years in the Autumn statement, after a public sector pay freeze.
Some people argue that when there is a public sector pay freeze it is wrong to be helping the richest in society.
This suggests scope for a real cut in public pay of around 5%, which could be delivered through a two-year pay freeze.
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